Court Orders Auction of Tuju Property in Loan Dispute

Former Cabinet Secretary Raphael Tuju in a past interview at his Karen home. PHOTO/ File

The High Court has issued a split decision in a high-value property dispute involving former Cabinet Secretary Raphael Tuju, allowing creditors to proceed with the auction of one of his major commercial developments while placing temporary safeguards on another asset.

The ruling effectively clears the sale of Dari Business Park but preserves interim protection over Entim Sidai, subject to strict compliance conditions imposed by the court.

At the centre of the dispute is a multibillion-shilling credit facility estimated at Ksh 2.2 billion, which Tuju obtained from a commercial lender to support large-scale property investments in Nairobi’s Karen area.

Subsequently, the deal soured owing to an alleged case of default on the part of one party; the other party resorted to legal means to recover the funds abroad.

According to Tuju, there has been impropriety in the manner in which the funds were recovered.

Split Decisions Made on Sale of Assets

In Wednesday’s May 20 decision made by the High Court, a different path was followed with respect to the contested assets.

While it approved the sale of Dari Business Park on account of its enforceability within the framework of an already issued judgment, a stay order has been imposed regarding the sale of Entim Sidai until the conclusion of the matter.

It should be noted that not all contested assets had reached the necessary standards to impose an injunction upon them.

Also Read: Hotel at Dari Business Park Closed Amid Ongoing Tuju–EADB Dispute

Imposition of Ksh 50 Million Security Condition

As one of the conditions of the provisional measures, the judge directed Tuju to deposit Ksh 50 million within thirty days as security to protect Entim Sidai.

This was a mandatory condition because failing to do so would mean lifting the stay order of Entim Sidai for auctioning.

Additionally, it was made clear by the judge that Dari Business Park would continue its proceedings on a separate basis.

Also Read: Court Delivers Ruling on Petition Challenging Election of Leo Wamuthende

Background of the Ongoing Debt Dispute

The debt dispute is linked to a loan transaction made in the year 2015, meant to fund the expansion of Tuju’s property holdings in Nairobi.

The lender, however, took the process up another notch in 2019 through a legal judgment obtained in a UK court, which was recognized and enforced in Kenya.

In 2024, Tuju sought the aid of the courts to prevent the auction of some properties owing to an ongoing dispute.

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